Domino’s Pizza reports 6.4% revenue increase in Q4FY2025 financial results
The report highlights continued global retail sales growth, meaningful net store expansion, and higher operating income as the company closed out a year of steady demand and strategic investment.
USA – Domino’s Pizza, Inc., the world’s largest pizza chain, reported robust financial results for the fourth quarter and full fiscal year 2025, driven by global retail sales growth, strategic store expansions, and shareholder returns.
The Ann Arbor, Michigan-based company announced the figures highlighting a 6.4% revenue increase to US$1.54 billion in Q4, surpassing analyst estimates despite an EPS miss.
Revenues increased by US$91.8 million in the fourth quarter of 2025 as compared to the fourth quarter of 2024, primarily due to higher supply chain revenues, US franchise advertising revenues and US franchise royalties and fees.
US Company-owned store gross margin decreased 5.4 percentage points in the fourth quarter of 2025 as compared to the fourth quarter of 2024, primarily due to higher insurance costs, higher labor rates and the increase in the Company’s food basket pricing to stores.
Supply chain gross margin increased by 0.1% points in the fourth quarter of 2025 compared to the fourth quarter of 2024, primarily due to procurement productivity, partially offset by higher insurance costs and an increase in the cost of the Company’s food basket.
In the fourth quarter, income from operations climbed 8.0% to US$295.7 million, while net income rose 7.2% to US$181.6 million, yielding diluted EPS of US$5.35, up 9.4% from US$4.89 the prior year.
Net cash provided by operating activities was US$792.1 million in 2025 as compared to US$624.9 million in 2024.
The Company spent US$120.6 million on capital expenditures in 2025, compared to US$112.9 million in 2024, resulting in free cash flow of US$671.5 million in 2025, compared to US$512.0 million in 2024.
The positive impact of changes in operating assets and liabilities primarily drove the increase in free cash flow.
Additionally, higher net income excluding non-cash operating activities, as well as the timing and amount of advertising activities, contributed to the increase in free cash flow. These increases were partially offset by higher capital expenditures.
Domino’s Board approved a 15% quarterly dividend hike to US$1.99 per share and repurchased US$354.7 million in stock, underscoring financial health amid economic pressures.
With net store growth and digital innovations boosting momentum, the company eyes continued expansion into 2026, navigating FX headwinds and consumer value focus.
Looking ahead, Domino’s signaled it will continue to prioritize profitable store growth, investments in digital and supply‑chain capabilities, and menu initiatives designed to drive frequency and ticket size.
The company said it will provide additional details on capital allocation and guidance in upcoming investor communications.
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